Fact Sheet - Investor Relations Solutions

2016 SECOND QUARTER
FACT SHEET
“This was an excellent quarter for Simon Property Group, with strong financial
and operational performance, the opening of a new outlet center, the groundbreaking for our second Premium Outlet in Malaysia, and the acquisition of
The Shops at Crystals, a highly productive center. Today, we raised our quarterly
dividend and are once again increasing our full-year 2016 guidance.”
David Simon Chairman & CEO, July 27, 2016
Financial and
Operating Highlights
c Funds
from Operations (1) (FFO) per diluted
share was $2.63 for the quarter. Growth in
comparable FFO per diluted share, which
excludes a $0.22 per diluted share gain
upon sale of marketable securities in the
prior year period, was 9.1% for the three
months ended June 30, 2016.
c FFO
per diluted share was $5.27 for the six
months as compared to $4.92 in the prior
year period. Growth in comparable FFO per
diluted share for the six months ended June
30, 2016 was 12.1%.
c Growth
in portfolio net operating income
(NOI) (2) was 7.4% and 7.6%, respectively, for
the three months and six months ended June
30, 2016. Comparable property NOI (3) growth
was 3.2% and 4.1%, respectively, for the three
and six months ended June 30, 2016.
c Ending
occupancy was 95.9%.(4)
cBase
minimum rent was $50.43 per
square foot.(4)
c Releasing spread was $8.88 per square foot.(4)
c Total
sales per square foot were $607.(4)
c Raised
quarterly common stock dividend in
July 2016 to $1.65 per share, a year-overyear increase of 6.5%. Record date August 17,
2016, payable on August 31, 2016.
Development Activity
c During
the quarter, we completed the
transformation of Stanford Shopping Center
in Palo Alto, California which included the
relocation of Bloomingdale’s into a new,
120,000 square foot store. The former
Bloomingdale’s store has been redeveloped
into more than 130,000 square feet of new
specialty retail shops and restaurants.
c We
also opened a 355,000 square foot
outlet center in Columbus, Ohio on June
24, 2016. Simon owns 50% of this new
center.
c Construction
continues on two new
development projects scheduled to open in
2016:
–The 500,000 square foot retail component
to Brickell City Centre in Miami, Florida
scheduled to open in November. Simon
owns a 25% interest in this project.
–Clarksburg Premium Outlets, a 392,000
square foot center in Clarksburg, Maryland
scheduled to open in October. Simon owns
a 66% interest in this project.
cWe
started construction on two new
development projects during the quarter.
Norfolk Premium Outlets, a 332,000
square foot center in Norfolk, Virginia is
scheduled to open in June of 2017. Simon
owns a 65% interest in this project. We also
started construction on Genting Highlands
Premium Outlets, a 252,000 square foot
center in Kuala Lumpur, Malaysia, scheduled
to open in the second quarter of 2017. Simon
owns a 50% interest in this project.
c Construction
also continues on four other
new development joint venture projects
scheduled to open in 2017, including The
Shops at Clearfork (Fort Worth, Texas),
Siheung Premium Outlets (Siheung
(Seoul), South Korea), Premium Outlet
Collection Edmonton IA (Edmonton, Alberta,
Canada) and Provence Designer Outlet
(Miramas, France).
cDuring
the second quarter, we started
construction on a 221,000 square foot
expansion at La Plaza Mall in McAllen,
Texas that will include additional specialty
stores, four junior anchors and an exciting
dining plaza with a number of first-tomarket restaurants.
c Construction
continues on other significant
expansion projects including The Fashion
Centre at Pentagon City, King of Prussia,
The Galleria in Houston, and Woodbury
Common Premium Outlets.
cAt
quarter-end, redevelopment and
expansion projects, including the addition
of new anchors, were underway at
33 properties in the U.S. and Europe.
Simon’s share of the costs of all new
development and redevelopment projects
under construction at quarter-end was
approximately $2.1 billion.
Acquisition
c In
April 2016, we completed the acquisition
of The Shops at Crystals in Las Vegas, Nevada
in a joint venture with Invesco Real Estate.
Simon owns a 50% interest in this center
and will lease and manage the center for
the joint venture. The purchase price was
approximately $1.1 billion.
Capital Markets
c The
Company was active in both the
unsecured and secured credit markets in
the first half of the year continuing to lower
our effective borrowing costs and extend
our maturity profile.
c During the quarter, the Company completed
a Euro senior notes offering totaling €500
million with a 1.25% coupon rate and term
of nine years.
c During
the first six months, we closed or
locked rate on 14 new mortgage loans
totaling approximately $2.5 billion, or the
non-U.S. dollar equivalent thereof, of which
Simon’s share is $1.6 billion. The weighted
average interest rate and term on these
loans is 3.73% and 9.4 years, respectively.
Included in these loans was a $550 million
mortgage for The Shops at Crystals.
c As
of June 30, 2016, Simon had over $6.0
billion of liquidity consisting of cash on
hand, including its share of joint venture
cash, and available capacity under its
revolving credit facilities.
(1) Please refer to back cover and our quarterly Form
8-K Supplemental for information on non-GAAP
financial measures
(2) Includes comparable property NOI, NOI from
new development, redevelopment, expansion and
acquisitions, NOI from international properties and
our share of NOI from investments
(3) Combined information for U.S. Malls, Premium
Outlets, The Mills and Lifestyle Centers; excludes
domestic lease termination income, interest
income, land sale gains, straight line rent, above/
below market lease adjustments, and the impact of
significant redevelopment activities
(4) Combined information for U.S. Malls and Premium Outlets
Below:
Fashion Valley,
San Diego,
CA
Left:
The Mills at
Jersey
Gardens,
Elizabeth, NJ
Below:
Orlando
Vineland
Premium
Outlets,
Orlando, FL
Global Leader in the Retail
Real Estate Industry
c S&P
100 company with total market
capitalization of $108 billion and an equity
market capitalization of $79 billion (1)
c Owns
or has an interest in 230 retail real
estate properties including Malls, Premium
Outlets® and The Mills® comprising 191
million square feet in North America,
Europe and Asia (1)
c Tenants
in U.S. portfolio generate annual
retail sales of more than $63 billion
c 20.3% (1)
ownership interest in Klépierre, a
public real estate company with shopping
centers in 16 European countries
Investment Merits
c Positive
operating fundamentals; FFO per
share compound annual growth of more
than 14% from 2010 to 2015
c Organic
growth drivers: retailer demand
for stores in quality locations and ability
to re-lease space at higher market rents
upon expiration
c Opportunities to invest for accretive
returns: redevelopments in existing portfolio
and new ground-up Premium Outlets and
mixed-use projects
c $2.1
billion (our share) of projects under
construction
c Dividend
growth: 5-year dividend per share
compound annual growth of more than
18%; current quarterly dividend of $1.65, an
increase of 6.5% compared to prior year
c Low
cost of capital: highest investmentgrade credit ratings in industry
(Moody’s A2, Standard & Poor’s A)
c Industry-leading
management team:
experienced at operating through all
economic cycles
Corporate Leadership
c Named
Fortune’s Most Admired Real Estate
Company in 2016 (seventh time)
c Global
recognition of management:
– Best-performing global CEOs by Harvard
Business Review, 2013 and 2014
– World’s Best 30 CEOs by Barron’s, 2013
– #1 CEO in real estate industry by
Institutional Investor, five consecutive
years
c Recognized three times by Institutional
Investor as the Best Investor Relations
program among REITs
Sustainability
c Listed
for the seventh year on CDP’s
Climate Disclosure Leadership Index
c Awarded ‘100A’, the highest score, earning
Simon a position on the Climate “A” List by
CDP for the second consecutive year in
2015
c Received
Green Star rating, the highest
designation awarded by GRESB in 2014
and 2015
High-Quality Portfolio
of Retail Properties in
Major Markets:
Aventura Mall — Miami
Burlington Mall — Boston
Copley Place — Boston
Dadeland Mall — Miami
Desert Hills Premium Outlets — Cabazon (Palm Springs), CA
Fashion Centre at Pentagon City — Washington, D.C.
Fashion Valley — San Diego
The Florida Mall — Orlando
The Forum Shops at Caesars — Las Vegas
The Galleria — Houston
Gotemba Premium Outlets — Gotemba (Tokyo), Japan
King of Prussia— Philadelphia
Las Vegas Premium Outlets(2) — Las Vegas
Lenox Square and Phipps Plaza — Atlanta
c 32%
Orlando Premium Outlets(2) — Orlando
c More
Sawgrass Mills — Ft. Lauderdale
reduction in electricity consumption
since 2003 (excluding organic growth)
than 375 electric vehicle charging
stations at properties across the U.S.
c For
additional information, please see
Simon’s Sustainability Report 2015, available
at www.simon.com/sustainability
(1) As of June 30, 2016
Roosevelt Field — New York
The Shops at Crystals—Las Vegas
The Shops at Riverside—New York
SouthPark — Charlotte
Stanford Shopping Center — Palo Alto
Town Center at Boca Raton — Boca Raton
Walt Whitman Shops — New York
The Westchester — New York
Woodbury Common Premium Outlets — New York
Woodfield Mall — Chicago
SELECTED
FINANCIAL DATA
(In thousands, except per share data and as otherwise noted)
As of or for the six
months ended June 30, As of or for
the year ended
2016201512/31/15
OPERATING DATA:
Pro-rata share of total revenue (1)
Consolidated net income
Net income attributable to common stockholders
$3,352,5092
$1,091,164
$936,384
$ 3,256,027
$1,186,962
$ 1,012,078
$6,670,856
$2,139,375
$ 1,824,383
PER COMMON SHARE DATA:
FFO (2) (diluted)
Net income (diluted)
Distributions per share
Closing price
$5.27
$3.01
$3.20
$216.90
$
$
$
$
$
$
$
$
BALANCE SHEET DATA:
Cash and cash equivalents
Total assets
Mortgages and unsecured indebtedness
$884,281
$31,379,783
$22,923,941
$
565,657
(4)
$30,083,531
$ 22,070,777(4)
OTHER DATA:
Shares of common stock
314,232
Limited partnership units
47,533
Total equity capitalization (in millions)
$78,555
$
Total market capitalization (3) (in millions)
$108,132
$
4.92
3.26
2.90
173.02
9.86
5.88
6.05
194.44
$
701,134
$30,565,182
$22,416,682
309,417
51,817
62,582
$
91,215
$
309,421
51,814
70,321
99,426
(1) Includes our non-GAAP pro-rata share of all consolidated and joint venture entities as presented in our quarterly Form 8-K Supplemental Information; does not include Klépierre and HBS Global Properties.
(2) Please refer to the back cover for a reconciliation of diluted net income per share to diluted FFO per share.
(3)Includes our share of consolidated and joint venture debt.
(4)Has not been restated to reflect the impact of ASU 2015-03 regarding the presentation of debt issuance costs.
STATISTICS
As of
As of
As of
6/30/16 6/30/1512/31/15
U.S. OPERATIONAL STATISTICS (1)
Ending Occupancy
Base Minimum Rent per square foot
Releasing Spread per square foot (for trailing twelve months)
Releasing Spread (percentage change)
Total Sales per square foot (for trailing twelve months)
Occupancy Cost (percentage of sales)
95.9%
96.1%
96.1%
$50.43
$
48.07
$
48.96
$8.88
$
10.87
$
10.62
14.8%18.4%
18.0%
$607
$620
$620
12.7%11.9%
12.3%
NUMBER OF PROPERTIES
Malls
Premium Outlets
The Mills
Lifestyle Centers
International
Other Properties
Total Number of Properties
108
110
71 68
14
14
4
3
23
21
10
12
230 228
108
71
14
4
22
12
231
TOTAL SQUARE FOOTAGE (in thousands)
191,376
189,339
191,375
(1) Combined information for U.S. Malls and Premium Outlets. For statistical definitions, see our quarterly Form 8-K Supplemental Information available on our website at investors.simon.com.
Below:
Roosevelt Field
Garden City
(New York), NY
Above:
Phipps Plaza,
Atlanta, GA
Left:
Del Amo
Fashion Center,
Torrance
(Los Angeles),
CA
Non-GAAP Financial Measures
We consider FFO a key measure of operating performance that is not defined by generally accepted accounting principles in the U.S. We
determine FFO per share based upon the definition set forth by NAREIT. We use FFO internally to evaluate the operating performance of
our portfolio and believe FFO provides investors with additional information concerning our operating performance and a basis to compare
our performance with other real estate investment trusts (REITs).
RECONCILIATION OF DILUTED NET INCOME PER SHARE TO DILUTED FFO PER SHARE
Six months ended
June 30,
Six months ended
June 30,
For the year ended
December 31,
201620152015
Diluted net income per share
Adjustments to arrive at FFO:
Depreciation and amortization from consolidated properties and our share of
depreciation and amortization from unconsolidated entities, including Klépierre and
HBS Global Properties, net of noncontrolling interests portion of depreciation and amortization
Gain upon acquisition of controlling interests and sale or disposal
of assets and interests in unconsolidated entities, net
Diluted FFO per share
$3.01
$
2.33
(0.07)
$5.27
3.26
$5.88
2.28
4.67
(0.62)
(0.69)
$ 4.92
$9.86
For reconciliations of other non-GAAP financial measures, see our quarterly Form 8-K Supplemental Information available at investors.simon.com.
Stockholder Inquiries
Tom Ward, Senior Vice President
Investor Relations
800-461-3439
[email protected]
Company Securities
Our common stock and preferred stock are traded on the New York
Stock Exchange under the following symbols:
Common Stock
8.375% Series J Cumulative
Redeemable Preferred SPG
SPGPrJ
Investor Services Program
We offer an Investor Services Program for investors wishing to
purchase or sell our common stock. To enroll in this program, please
contact our transfer agent, Computershare at 800-454-9768 or
www.computershare.com/investor.
Website
Information such as financial results, corporate announcements,
dividend news and corporate governance is available at
investors.simon.com.
TOTAL STOCKHOLDER RETURN
SPG VS.
YEAR
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Compound Annual Return
Cumulative Total Return
2016 (As of July 31st)
SPG
S&P 500
S&P 500
37.0% 15.8%21.2%
-11.3% 5.5%-16.8%
-35.9%-37.0% 1.1%
58.0%26.5%31.5%
28.4% 15.1%13.3%
33.6% 2.1%31.5%
26.0% 16.0%10.0%
-0.9% 32.4%-33.3%
31.2% 13.7%17.5%
10.2% 1.4%8.8%
14.3%
7.3%
7.0%
281%
102%
179%
18.8%
7.7%
11.1%